Paramount Global (NASDAQ:PARA) shares fell 17% in early Thursday trade after the media and entertainment giant reported soft Q1 results.
The company posted a profit of $0.09 per share on revenue of $7.27 billion, missing the analyst consensus for earnings of $0.17 on revenue of $7.42B. On a more positive note, the company said its Paramount+ product added 4.1 million subscribers, above the 3.1M consensus.
“Looking ahead, we are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment,” CEO Bob Bakish said in a press release.
The company announced it is reducing its quarterly cash dividend by 80% to $0.05 per share.
“The updated dividend policy we have announced today will further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability,” Bakish added.
Goldman Sachs analysts commented:
“While we are encouraged by the continued momentum with Paramount+ subs, we expect a negative initial reaction in the stock owing to the miss to consolidated financials and unexpected reduction in the dividend.”